Chennai: Tamil Nadu’s Urban Habitat Development Board is examining options to draw ₹15,000 crore in private investment for schemes aimed at building homes for the urban poor.
The board—earlier known as the Tamil Nadu Slum Clearance Board and later renamed—currently relies mainly on state government allocations and funds under the Centre’s Prime Minister’s housing scheme. It also uses financing support from institutions such as the World Bank and the Asian Development Bank.
With urban populations increasing across the state, demand for housing has risen, while project costs have also gone up. Officials say this has created a need to mobilise additional resources beyond existing funding channels.
An official said earlier attempts to bring private builders into the board’s projects did not see strong interest. However, the current budget has announced that ₹15,000 crore will be mobilised through private participation, prompting the board to revisit and refine possible models.
Among the options being studied is a land-sharing approach, where the board provides land, private developers construct buildings, and a portion is allotted to the board while the remaining units can be sold by the developer. The board is also exploring what incentives could be offered to participating firms, with new proposals expected to be announced soon.
